TN software exports to cross Rs 10,000-cr mark this fiscal

Elcot signs memorandum of understanding with HDFC

Tamil Nadu expects to cross the Rs 10,000-crore mark in software exports by the end of the 2004-05 fiscal after clocking Rs 7,621.5 crore in exports in 2003-04.

"We are hopeful of crossing Rs 10,000 crore in software exports by March 2005," said Vivek Harinarain, IT secretary (Tamil Nadu), and MD of Electronic Corporation of Tamil Nadu (Elcot).

He was addressing mediapersons at the signing of a memorandum of understanding (MoU) between Elcot and HDFC in Chennai on Friday to promote the development of IT and ITeS industries in Tamil Nadu.

Elcot and HDFC will provide a single window facility for all physical and non-physical infrastructure needs of both new and existing IT and ITeS companies. HDFC will assist IT and ITeS companies to identify real estate locations, developers and finance the whole project.

"HDFC will help new entrants set up operations in a smooth, seamless and transparent manner. We have experience in real estate and have played a similar role with Coca-Cola, Barclays Bank and Deutsche Bank to help them set up shops in India," said Mathew Joseph, regional manager-Tamil Nadu and Kerala.

The bank will work with real estate developers to ensure that projects are completed according to schedule.

He further added that HDFC will employ its technical and legal strengths in facilitating companies set up shop or scale up facilities. HDFC will create awareness about this initiative by advertising within Tamil Nadu and marketing it at all its branches across the country.

"Earlier there were 100 new companies coming to Tamil Nadu every year, the objective now is to increase it to 150 new companies a year," added Harinarain.

Elcot is also aiming at increasing the amount of tailor-made space available for IT and ITeS companies in the next two-three years to 10 million sq ft. In the last two to three years, six million sq ft of space has already been created for the IT and ITeS industries.

In the human infrastructure space, Elcot has launched an HR initiative where five universities in Tamil Nadu have offered ITES certificate courses in 2004-05, the model for which will be developed by Elcot.

"In the past, 80-85 per cent of the companies in the state have been IT companies, however in the last six months to one year there has been an increase in the number of ITES companies coming in," remarked Harinarain.

The Tamil Nadu government has approved a 30 per cent subsidy for small and medium enterprises (SMEs) in the stall rent payable in government approved international and national IT trade shows and exhibitions. This includes the IndiaSoft 2005 scheduled to be organised in Chennai on March 20-21.